Environmental Management System (EMS) as the Foundation for Sustainability

Based on ISO 14001 Standard

Environmental Policy

 Serigraph Inc. believes that environmental stewardship is a corporate responsibility.  Serigraph shall manage its operations in a manner that reflects

continual environmental improvement

of the air, land, and water.  To achieve this, Serigraph shall establish a framework for setting and

reviewing environmental objectives and targets

.

Bio-Filter Operation

Serigraph Manufacturing VOC laden air from Printroom

Reservoir Reservoir

Humidification Chamber Takes air temp from 130 °F to 75 °F and adds humidity to 100% Humid air spreads over bark media which helps micro-organisims "eat" VOCs

Significant Environmental Aspects Impact Action Record Document Performance Indicator Responsibility Reduce VOCs by 5% Consumption of materials, generation of waste (Hazardous) and Non Hazardous) Use cross functiona l teams using DMAIC Process and develop action plans to use UV inks on new and existing programs Minutes Team review of documents at White Board Nick Leifeld Compliance audits and Internal ISO 14001 audits Number of non conformances Scott Wolff

Significant Environment al Aspects Impact Actions Record Document Performa nce Indicator Responsibil ity Reduce power and water consumption Consu mptio n of energy Use DMAIC process to identify and Reduce power consumption Electric, water and Gas bills KWh, gallons and Therms used Scott Wolff

Reducing Volatile Organic Chemicals

Serigraph Plant 2 VOC Emissions

Emissions Before Biofilter Emissions after Biofilter 90.0

80.0

70.0

60.0

50.0

40.0

30.0

20.0

10.0

0.0

84.2

2000 16.8

60.7

2001 12.1

47.8

9.6

2002 2003 48.6

9.7

46.7

9.3

2004

Years

2005 37.9

7.6

35.6

7.1

2006 33.4

6.7

2007 33.5

6.7

2008 4.3

21.3

2009

Energy Reduction

 Water Consumption - Process Flow to find waste; Actions to eliminate  Pareto of where Electrical consumption is used; Change lighting which accounts for 22% of cost  Analyze where and what causes Natural gas consumption variation and how better controls can be implemented

6

s

Problem Solving

 Define - find improvement opportunities that emphasize the greatest needs  Measure - determine current process capability; Process Flow / Map  Analyze - identify vital few process inputs that affect key process outputs – Pareto, C-E, DOE

6

s

Problem Solving

 Improve - Make changes to process settings, redesign processes, reduce number of defects, amount of waste  Control - Implement process control plans, install real-time process monitoring tools, standardize processes, error proof processes

DMAIC Electricity Reduction kWh

1400000 9 1300000 1200000 1100000 1000000 900000 9 9

I Chart of Kwh by Year -Month

10 9 UCL=1114384 _ X=1008084 9 9

Year -Month

9 10 10 10 LCL=901783

DMAIC Natural Gas Reduction Therms

Fitted Line Plot Jan 2006- April 2010

Therms = 61799 - 692.6 Temp + 2.430 Temp**2 60000 50000 S R-Sq R-Sq(adj) Regression 95% CI 95% PI 2867.35

89.6% 89.1% 40000 30000 20000 10 20 30 40

Temp

50 60 70 80

250.0

200.0

150.0

100.0

50.0

0.0

190.7

2007

Ratio of kWh to Production Hours

185.8

152.4

2008

Years

2009 2010 6.0

5.9

5.8

5.7

5.6

5.5

5.4

5.3

5.2

5.9

2007

Ratio of Therms to Production Hours

5.8

5.5

2008

Years

2009 2010

Hazardous Waste Improvement

0.90

0.80

0.70

0.60

0.50

0.40

0.30

0.20

0.10

0.00

0.79

Ratio of Hazardous Waste to Production Hours

0.83

0.29

2007 2008

Years

2009 2010

QUESTIONS?